How much will Susan's stock be worth if she sells it five years from today?
A) $71,423.85
B) $73,419.66
C) $75,628.75
D) $80,333.40

Question

Quizplus · Accepted Answer

To find the future value of the stock, we use the formula: FV = PV x (1+r)^n, where PV is the present value (or current price) of the stock, r is the annual rate of return, and n is the number of years. We are given that Susan's stock is currently worth $50,000, and that she expects it to grow at an annual rate of 4%. We can plug these values into the formula and solve for FV:
FV = $50,000 x (1+0.04)^5 = $75,628.75
Therefore, the best choice is C, $75,628.75.

How Much Will Susan's Stock Be Worth If She Sells